MLTX Stock Garners Retail Attention On Buyout Speculation, Positive Skin Condition Trial Data

• Last year, Financial Times reported that big pharma company Merck had attempted to acquire MoonLake for over $3 billion though the approach was rejected.
• MoonLake over the weekend announced that two of its late-stage trials in Hidradenitis suppurativa (HS) showed that clinical responses continue to improve to Week 40.
• Currently, FDA approved medicines for HS include Novartis’s Cosentyx and AbbVie’s Humira.

Shares of MoonLake Immunotherapeutics (MLTX) garnered retail interest on Tuesday on the heels of the company announcing long-term results from its late-stage clinical trials in moderate-to-severe hidradenitis suppurativa.

On Stocktwits, retail sentiment around MLTX stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘extremely high’ levels.

A Stocktwits user highlighted optimism for a buyout for MoonLake, highlighting other recent mergers and acquisitions in the pharma industry, such as Biogen’s buyout of Apellis.

Last year, Financial Times reported that big pharma company Merck had attempted to acquire MoonLake for over $3 billion though the approach was rejected.

Another user said that they are eyeing the stock breaching $19 levels.

Yet another lauded the stock as the “Best buy in clinical biopharma,” while adding that it guarantees a “massive payday.”

MoonLake’s Recent Data Reveal

MoonLake over the weekend announced that two of its late-stage trials in Hidradenitis suppurativa (HS) showed that clinical responses continue to improve to Week 40, with 62% of patients treated with sonelokimab (SLK) achieving 75% reduction in abscess and inflammatory nodule count. Hidradenitis suppurativa (HS) is a chronic, noncontagious inflammatory skin condition causing painful, recurring lumps and abscesses, often leading to scarring and tunnels under the skin.

According to MoonLake, the data sets a new standard in long-term lesion control of HS as approved drugs only reported similar reduction in symptoms for about 40% and 60% of subjects, respectively, at the 1-year mark of their respective pivotal trials.

Currently, FDA approved medicines for HS include Novartis’s Cosentyx and AbbVie’s Humira.

According to data from Koyfin, 12 of the 16 analysts covering MLTX rate it ‘Buy’ or higher while two rate ‘Hold’ and the remaining two rate it ‘Sell.’ The 12-month average price target on the stock is at $26.71, representing a potential upside of about 41%.

MLTX stock slumped 52% over the past 12 months. 

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